Summarized Group Cash Flow Statement

Eni’s Summarized Group Cash Flow Statement derives from the statutory statement of cash flows. It enables investors to understand the connection existing between changes in cash and cash equivalents (deriving from the statutory cash flows statement) and in net borrowings (deriving from the summarized cash flow statement) that occurred in the reporting period. The measure which links the two statements is represented by the free cash flow which is calculated as difference between the cash flow generated from operations and the net cash used in investing activities. Starting from free cash flow it is possible to determine either: (i) changes in cash and cash equivalents for the period by adding/deducting cash flows relating to financing debts/receivables (issuance/repayment of debt and receivables related to financing activities), shareholders’ equity (dividends paid, net repurchase of own shares, capital issuance) and the effect of changes in consolidation and of exchange rate differences; and (ii) change in net borrowings for the period by adding/deducting cash flows relating to shareholders’ equity and the effect of changes in consolidation and of exchange rate differences. The free cash flow is a non-GAAP measure of financial performance.

Summarized Group Cash Flow Statement (a)

2011

 

(€ million)

2012

2013

Change

7,877

 

Net profit - continuing operations

4,944

4,972

28

 

 

Adjustments to reconcile net profit to net cash provided by operating activities:

 

 

 

8,606

 

- depreciation, depletion and amortization and other non monetary items

11,349

9,578

(1,771)

(1,176)

 

- net gains on disposal of assets

(875)

(3,770)

(2,895)

9,918

 

- dividends, interests, taxes and other changes

11,925

9,162

(2,763)

(1,696)

 

Changes in working capital related to operations

(3,373)

486

3,859

(9,766)

 

Dividends received, taxes paid, interest (paid) received during the period

(11,614)

(9,459)

2,155

13,763

 

Net cash provided by operating activities - continuing operations

12,356

10,969

(1,387)

619

 

Net cash provided by operating activities - discontinued operations

15

 

(15)

14,382

 

Net cash provided by operating activities

12,371

10,969

(1,402)

(11,909)

 

Capital expenditure - continuing operations

(12,761)

(12,750)

11

(1,529)

 

Capital expenditure - discontinued operations

(756)

 

756

(13,438)

 

Capital expenditure

(13,517)

(12,750)

767

(360)

 

Investments and purchase of consolidated subsidiaries and businesses

(569)

(317)

252

1,912

 

Disposals

6,014

6,360

346

627

 

Other cash flow related to capital expenditure, investments and disposals

(136)

(253)

(117)

3,123

 

Free cash flow

4,163

4,009

(154)

41

 

Borrowings (repayment) of debt related to financing activities (b)

(83)

(3,983)

(3,900)

1,104

 

Changes in short and long-term financial debt

5,947

1,778

(4,169)

(4,327)

 

Dividends paid and changes in non-controlling interests and reserves

(3,746)

(4,231)

(485)

10

 

Effect of changes in consolidation and exchange differences

(16)

(50)

(34)

(49)

 

NET CASH FLOW

6,265

(2,477)

(8,742)

Changes in net borrowings

Capital expenditure

Reconciliation of net profit and shareholders’ equity of the parent company Eni SpA to consolidated net profit and shareholders’ equity